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KiwiBuild discount favours Auckland, Queenstown: CoreLogic

KiwiBuild’s price cap system will offer the greatest discount on big homes in Auckland and Queenstown, new research from CoreLogic suggests.

Thursday, October 4th 2018, 2:28PM

The real estate research firm says larger homes in the two cities will enjoy the biggest price discount, while smaller homes, and those outside of Auckland and Queenstown, will see less of a discount, compared to the median market prices paid by first home buyers.

Under KiwiBuild, one bedroom homes in Auckland and Queenstown have a $500,000 cap. Two bedroom homes in the cities have a $600,000 cap, while three bedroom homes in the cities are capped at $650,000. For the rest of the country, KiwiBuild homes are capped at $500,000 regardless of size.

The ballot for the first Kiwibuild homes is already underway and lenders are grappling to win business from prospective buyers. BNZ is offering 95% loans for 12 months, while ASB is offering 95 percent loans and a $2,500 cash contribution.

Buyers looking to enter the fierce competition for a one-bedroom KiwiBuild home may want to think again. According to the research, the $500,000 cap on one bedroom properties in Auckland and Queenstown is just $50,000 below the median price already paid by first home buyers.

In contrast, CoreLogic says two bedroom KiwiBuild homes in Auckland offer a bigger discount to market prices. First home buyers pay a median price of $713,000 for two bedroom homes in Auckland, way above the $600,000 KiwiBuild price cap.

The cap system offers Aucklanders more value than Wellingtonians. In the capital first home buyers pay a median of $496,000 for a two bedroom home, under the $500,000 limit.

Three bedroom homes or bigger offer the biggest discount according to CoreLogic. Median prices paid by first home buyers for three-beds in Auckland (apart from Papakura and Franklin) exceed the $650,000 KiwiBuild price cap. As do homes in Queenstown.

Other cities offer slightly less value on three-beds, according to the research. The median price paid by first home buyers in Wellington City and Tauranga slightly exceeds the KiwiBuild cap. But prices in Upper Hutt, Lower Hutt, Porirua, Hamilton, Dunedin, and Christchurch do not exceed the Kiwibuild cap.

Tags: Auckland

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 ▼8.09 ▼7.59 ▼7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 ▼9.09 ▼8.59 ▼8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 28 March 2024 9:42am

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